Thatcher was a strong leader: Gillard

AUSTRALIA'S first female prime minister Julia Gillard says Margaret Thatcher created history in the United Kingdom with her stronger leadership.

Baroness Thatcher, 87, died following a stroke on Monday.

She was British prime minister from 1979 to 1990.

"Her service as the first female prime minister of the United Kingdom was a history-making achievement," Ms Gillard said in a statement from China on Monday.

"Her strength of conviction was recognised by her closest supporters and her strongest opponents.

"I extend my sincere condolences and those of my fellow Australians to her family and friends."

Opposition Leader Tony Abbott said Baroness Thatcher was one of the greatest British prime ministers and one of the most significant world leaders of our times.

"She was the first female prime minister of Great Britain and ranks with the greatest of prime ministers because of the quality of her leadership and the impact she had on Britain and the wider world," he said in a statement.

Mr Abbott said Baroness Thatcher arrested the decline of Britain and gave her nation new confidence.

"She ensured the British people no longer simply dwelt on the glories of the past but could enjoy a strong and prosperous future," he said.

Fellow Liberal politicians expressed their condolences on social media site Twitter.